Did you know that pre-2018, there were no taxes on long-term capital gains from equity and equity-oriented products? 👏🏻
However, the government imposed a 10% tax on long-term capital gains of over INR 1 lakh on equity products made after January 31st. 😭
Now paying taxes 💰has become an inevitability. That said, you can still significantly reduce your tax liability by using ✨TAX PROFIT HARVESTING✨
Here’s how it works down👇🏻
Let’s say you have a corpus of 8 lakhs and have made a gain of INR 1 lakhs. You sell those mutual funds and immediately purchase them back to book the gains.
LTCG on equity is not taxed if it’s under INR 1 lakh, you needn’t pay taxes on those gains booked.
So in the future year, when you sell your mutual funds, the cost of mutual funds purchased would be nine lakhs instead of eight lakhs, allowing you to pay lesser to nil taxes 💯
Thanks, @theviralfever for making this collab happen 🙏🏻
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#financewithsharan #ahsaaschanna #tax #taxes #savetax #taxseason